MAB goes solo at Merrifield

Artist’s impression of Merrifield, which was recently included in Melbourne’s new urban growth boundary.
AFR

by
Scott Elliott

Melbourne-based MAB Corporation plans to develop Victoria’s largest residential project on its own after an agreement with
Lend Lease
fell over.

The Merrifield master-planned community has a projected end value of $1 billion with the capacity for up to 4000 residential lots.

Merrifield would have granted Lend Lease further exposure to Melbourne’s booming northern growth corridor after the developer walked away from an agreement to develop the Lockerbie project at Kalkallo.

Lockerbie has since been picked up by Stockland.

It is understood MAB could not reach an agreement with Lend Lease after it requested changes to the Merrifield development agreement.

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“Earlier this year, we had invited expressions of interest for the sale or joint venture of the residential precinct," said MAB Corporation chief operating officer David Hall.

“As we have not finalised a deal with a preferred partner, MAB and Gibson Property Corporation will now deliver the initial stages of the residential development," he said.

The first stage of Merrifield will comprise a 50 hectare residential estate but Mr Hall said MAB would continue to explore opportunities with parties who had an interest in investing and participating in the development “whether it be in the residential, retail or industrial components".

Head of Lend Lease’s Communities business Toni Milis would not provide details of the Merrifield transaction but said the developer would focus on areas with strong population growth with demand for more affordable housing.

“Lend Lease always considers opportunities that meet our strategic growth plans and that includes increasing our footprint in Melbourne’s key growth corridors such as the north," she said.

MAB expects the Merrifield west precinct structure plan will be approved in early 2012.

Mr Hall said MAB was positioning itself to commence the first residential stage later next year.

MAB originally offered up four individual parcels of land for sale, a joint venture totalling 283 hectares at Merrifield, suited to a variety of development options.

Merrifield was recently included in Melbourne’s new urban growth boundary and the project will aim to provide housing and employment for 30,000 people with scope for a new university and significant commercial component.

MAB and GPC bought the Merrifield block in 2003 from a farmer who purchased the property in 1972.